When is the right time to buy and sell stock ?
Investing money in the stock market is not a joke, especially since the market is usually unpredictable. However, learning when to time the market can be your key to a successful investment. Although there are plenty of factors to consider when buying and selling stocks, such as market analysis and stock focus, there are some rules investors use in determining the best time to buy and sell stocks. Be aware that this guide would only benefit the investors from the North and South American markets because other markets open first.
The best time in selling stocks is the first minute the market opens up, particularly if there is bad news in the overseas market and indexes are down. Make sure to watch and take down of news in a given sector when the market opens or closes. For instance, bad news in the pharmaceutical sector could drag down every stock in that particular sector, so it wouldn’t be a good idea to sell your stocks in the meantime. However, this news would provide a buying opportunity for many people.
On the other hand, when there is good news in a particular sector, it is best to sell a stock that caused an increase due to the sector news and nothing about the stocks’ performance. However, these tips are not applicable for inexperienced traders as they may buy or sell without proper knowledge of the stock market.
Novice investors should avoid trading in the morning or after, but many experts would recommend trading in the middle of the day because this is the most stable time for stock prices. As a result, investors would less likely lose money caused by market volatility. If you’re just starting to invest in the stock market, you should consult with a financial professional that could assist you in making successful trades.
